Nigeria Senate’s Illegal Fund Repatriation Claim Is Baseless, Says MTN

MICHAEL AKINOLA with agency reports

MTN Group on Wednesday said the accusation by the Nigerian Senate that its Nigerian subsidiary, MTN Nigeria, illegally repatriated about $13.92 billion from the country was “completely unfounded and without any merit”.

In a terse rebuttal from the telecom group’s Johannesburg, South Africa base, Ferdi Moolman, MTN Nigeria CEO, said, “MTN’s attention has been drawn to various media reports containing allegations of improper repatriation of money out of Nigeria by the company.

”The reports refer to allegations made on the floor of the Senate that MTN had illegally repatriated $13.92 billion out of Nigeria over a period of 10 years in collusion with a number of commercial banks.

“The allegations made against MTN are completely unfounded and without any merit.

Senator Dino Melaye, representing Kogi West, last week Thursday raised the matter on the floor of the senate accusing the South African firm of the illegal transfer from Nigeria, depriving the country of its mandatory tax.

Following Melaye’s presentation, the lawmakers were particularly irked by the allegation that the firm used four Nigerian commercial banks and a serving minister to commit the alleged offence.

“Between 2006 and 2016, MTN, in collaboration with four commercial banks and with the help of a serving Minister, moved over $12billion out of this country,” Melaye said.

Melaye alleged that the company committed the crime in the last 10 years in connivance with four commercial banks and a serving minister.

Speaking under Order 42 of the senate, the lawmaker said that at this time of economic recession in Nigeria, it was imperative that all hands must be on deck to recover looted funds.

“We are in a precarious situation, and now is the time to recover every stolen money in the country. Between 2006 and 2016, MTN Nigeria, in collaboration with four commercial banks and with the help of a serving Minister, has moved $14 billion out of this country,” Melaye had said.

On Tuesday, Senators agreed to investigate the allegation.

The allegation threatens to raise tensions between Nigeria and MTN just three months after the South African firm agreed to pay a reduced fine of N330 billion in a settlement over unregistered SIM cards following interventions by Presidents Muhammadu Buhari and Jacob Zuma.

The company had threatened to pull out of Nigeria during the dispute over unregistered SIM cards.

MTN is the largest mobile phone operator in Nigeria which accounts for about one third of the company’s revenues.

MTN shares fell more than 3% on Tuesday, but opened 1% firmer on Wednesday.